Water Rates Set to Increase by 5.4% Starting April

Starting in April, residents can expect their water bills to increase by an average of 5.4 percent, according to industry reports. This uptick has sparked criticism, with some accusing companies of excessively profiting from consumers.

This adjustment translates to an additional £33 annually for the typical household in England and Wales, a figure that surpasses inflation by two percentage points.

Water UK, the industry representative, defended the decision by highlighting a planned £20 billion investment for 2026-27. This funding aims to ensure reliable water supplies and address the issue of sewage discharge into rivers and seas.

The announcement arrives amid widespread dissatisfaction over sewage pollution, which has been aggravated by rising bills intended to fund overdue infrastructure improvements.

Regulator Ofwat has permitted companies to increase rates by 36 percent from 2025 to 2030, with a significant portion—20 percent or an estimated £86—already imposed in last April’s rate hike.

The Consumer Council for Water (CCW) cautioned that the public is growing impatient and demands clear proof that their financial contributions are being utilized effectively.

There is significant regional variation in bill increases, with Severn Trent customers seeing a 10 per cent rise and Sutton and East Surrey imposing an 11 per cent jump.

Households in the Bristol area Water will see bills rise 12 per cent while Affinity Water (central region) customers were warned they have a 13 per cent jump coming.

South East Water is raising bills by an average 7 per cent to £324 a year after its customers suffered days of supply disruption this month (East Grinstead, pictured on January 12)

South East Water is raising bills by an average 7 per cent to £324 a year after its customers suffered days of supply disruption this month blamed on Storm Goretti.

This caused burst pipes and power cuts after a similar incident in December when 24,000 people in Tunbridge Wells were left without drinking water for two weeks.

Water UK said the cash raised from water bills could only be used to fund infrastructure that had been independently determined to be ‘new, necessary and value for money’.

A money-back guarantee meant that customer bills would automatically be refunded by the regulator if improvements were not delivered, it said.

More than two million households currently receive help with their bills through social tariffs, the WaterSure scheme and other affordability measures, and this will expand by an expected extra 300,000 households over the coming year.

Water UK chief executive David Henderson said: ‘We understand increasing bills is never welcome, but the money is needed to fund vital upgrades to secure our water supplies, support economic growth and end sewage entering our rivers and seas.

‘While we urgently need investment in our water and sewage infrastructure, we know that for many this increase will be difficult. That is why we will help around 2.5 million households – more than ever before – with average discounts of around 40 per cent off their water bill.’

CCW said it had seen a 51 per cent increase in complaints about water companies in 2025, mainly driven by concerns around affordability and upset over the scale of last April’s increase.

CCW chief executive Mike Keil said: ‘We’ve seen complaints brought to CCW about the affordability of water bills almost triple in the past year and further bill rises will compound people’s worries.

‘People support investment in improving services, but they are impatient for change and need to see compelling evidence their money is being well spent.’

‘A stronger safety net is also needed for those who simply can’t afford these bill rises.

‘Our independent review of water affordability back in 2021 made clear that a universal single social tariff would ensure financial support flows to where it is needed most. The postcode lottery of financial assistance created by existing water company social tariffs is unfair and unsustainable in the face of rising water bills.’ 

Ofwat interim chief executive Chris Walters said: ‘By April 2027 we are expecting water companies to have installed more than eight million water meters in homes to help customers manage their bills, to have replaced almost 3,000km of piping that will ensure customers experience fewer supply disruptions, and reduce sewage spills from storm overflows by 30 per cent from 2024 levels. 

‘These are just three examples that will help us reach our collective goal of cleaner rivers and seas, more resilient water supplies and better services for customers and the environment.

‘However, we also recognise that these bill increases may be difficult for some people. That is why we approved a doubling of company support available for customers who are struggling to pay and now more than two million households are accessing this help.’

Rob Abrams, campaign manager at Surfers Against Sewage, said: ‘Nearly a third of our water bills are swallowed up servicing the water company debt pile and shelling out dividends whilst we get sick from sewage.

‘So why should we believe this time will be any different?

‘Water isn’t a commodity. It’s a necessity. Yet it’s being milked for profit while sewage is pumped into our waters.

‘This broken system rewards greed and failure, and the only solution is a full system reset to put people and planet first. Nothing less will do.’

River Action chief executive James Wallace said: ‘When the water sector brags about ‘record investment’, what it really means is that bill payers, not water companies, are being forced to pick up the tab for decades of failure.

‘The privatised, pollution-for-profit model has failed. Until water companies are owned and governed for public and environmental benefit, using long-term patient capital, we will keep seeing regulatory failure and polluted rivers.’